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AR01413350 


REPORT 


OF  THE 


TRUSTEES  OF  THE  NEW-YORK  LIFE  INSURANCE 
AND  TRUST  COMPANY ; 


MADE  TO  THE  CHANCELLOR  OF  THE  STATE  OF  NEW-YORK, 
MARCH  29,  1831* 


ALBANY : 

PRINTED  BY  CR03WELL  AND  VAN  BENTHUYSEN. 


1831. 


.M55 


TRUSTEES. 


Wm.  Bard, 

Stephen  Van  Rensselaer, 
Isaac  Bronson, 
James  Kent, 
Edw'd.  C.  Delavan, 
Gulian  C.  Verplanck, 
Abraham  Bloodgood, 
Th's.  J.  Oakley, 
__John  Jacob  Astor, 
James  McBride, 
John  Hone, 
John  Duer, 
Walter  Bowne, 
Stephen  Whitney, 

E.  A.  Nicoll,  See'y* 


NATH'L.  PRIMEy 

John  Mason, 
Th's.  W.  Ludlow^ 
Benj'n.  F.  Butler, 
Wm.  B.  Lawrence, 
Jonathan  Goodhue* 
Sam'l.  Thompson, 
William  James, 
Peter  Remsen, 
Isaiah  Townsend, 
Benj'n.  Knower, 
John  Rathbone,  Junior^ 
Nicholas  Devereux. 

Wm.  Bard,  Pres9'L 


Avery  Architectural  and  Fine  Arts  Library 
Gift  of  Seymour  B.  Durst  Old  York  Library 


&§:sZ^    ,  .  ^  Jjj 

L 


REPORT. 


The  Trustees  of  the  New-York  Life  Insurance  and 
Trust  Company,  in  answer  to  the  Chancellor's 
order  of  the  2d  of  March,  exhibit  the  following 
statement. 

The  capital  of  the  corporation  is  a  million  of  dollars,  divided  in- 
to shares  ol  one  hundred  each.  The  whole  of  the  said  capital  is  to 
be  invested  in  bonds  and  mortgages,  on  unincumbered  real  estate 
within  the  State  of  New-York,  and  at  least  one  half  of  it  is  to  be 
constantly  invested  on  real  property  without  the  limits  of  the  ci- 
ty and  county  of  New-York. 

The  real  property  to  secure  any  investment  of  capital,  in  every 
case,  is  to  be  double  the  sum  charged  thereon. 

The  books  for  subscription  to  the  stock  were  opened  uii  the  7ch 
of  May,  1830.  Ten  per  cent  on  the  amount  subscribed,  was  paid 
in  on  that  day.  Desirous  to  leave  nothing  undone  towards  the 
faithful  performance  of  the  duty  imposed  on  them  by  the  act  of 
incorporation,  of  investing  their  capital  on  real  security,  the  trus- 
tees, at  a  meeting  held  the  12th  of  April,  1830,  twenty-five  days 
before  the  money  was  paid  in,  appointed  Isaac  Bronson,  Stephen 
Whitney,  Nathaniel  Prime,  and  Thomas  W.  Ludlow,  a  committee, 
the  president  being  a  member  of  all  committees,  to  invest  such 
portion  of  the  moneys  as  was  directed  to  be  paid  on  the  capital 
stock  at  the  time  of  subscription.  At  the  same  time  an  informal 
advice  was  given  to  the  committee,  not  only  to  engage  for  loans  to 
the  amount  of  $100,000,  but  to  contract  for  other  loans,  if  good 
ones  should  offer,  and  if  necessary,  to  borrow  the  money  to  com- 
plete them,  till  the  remaining  part  of  the  capital  should  be  paid  in. 
The  trustees  went  farther  ;  and  considering  that  if  the  stockhold- 
ers should  all  take  advantage  of  the  permission  given  them  in  the 
charter,  to  secure  their  stock  by  their  own  bonds  and  mortgages, 
on  unincumbered  real  estate,  that  it  would  be  of  little  importance 
to  the  company  what  interest  the  bonds  bore,  and  considering  it 


4 


their  duty  to  invest  their  capital  as  rapidly  as  they  could,  on  the 
terms  the  Legislature  prescribed,  the  trustees,  at  a  meeting,  held 
the  7th  May,  1830,  Resolved  : 

1st.  That  the  whole  amount  remaining  unpaid  on  the  stock  sub- 
scribed in  this  company,  be  paid  to  the  president  thereof,  at  the 
office  of  the  company,  on  or  before  the  1st  day  of  October  next, 
on  pain  of  forfeiting  the  payments  already  made  thereon,  and  that 
due  notice  be  given  of  this  resolution. 

2d.  That  any  stockholder  may,  on  or  before  the  said  first  day 
of  October  next,  secure  the  amount  to  be  paid  by  him  in  pursu- 
ance of  the  foregoing  resolution,  by  his  own  bond,  payable  in  one 
year,  with  interest  half  yearly,  at  five  per  cent,  w  hich  bond  shall 
be  secured  to  the  satisfaction  of  the  committee  of  investments,  by 
mortgage  on  his  own  real  estate,  or  by  the  assignment  of  other 
bonds  and  mortgages,  and  if  the  bonds  so  assigned  shall  bear  a 
greater  interest  than  five  per  cent,  the  surplus  of  interest  shall  be 
refunded,  from  time  to  time,  to  the  said  stockholders  respectively, 
if  any  such  surplus  shall  be  actually  received  by  the  company. 

The  trustees  were  induced  to  make  the  above  resolve,  from  the 
representations  of  the  loaning  committee,  who,  at  a  meeting  held 
on  the  6  th  of  May,  after  mentioning  certain  loans  that  had  been 
applied  for,  go  on  to  say,  "  Though  the  committee,  in  agreeing  to 
loan  the  above  sums,  believe  the  property  offered  to  be  ample  se- 
curity for  the  money  advanced  on  it,  and  that  in  each  instance  it 
is  worth  double  the  amount  loaned,  yet  they  have  to  state,  that 
the  proposals  they  have  received,  with  the  above  exceptions,  have 
not  been  such  as  to  encourage  them  to  hope  that  they  will  have 
offered  to  them,  particularly  in  the  city,  and  of  a  character  per- 
fectly satisfactory,  proposals  for  loaning  their  capital  at  the  usual 
rate  of  interest,  and  on  the  terms  the  charter  permits.  The  inac- 
tivity of  commerce  has  made  money  more  than  commonly  plenty, 
and  the  charter  requiring  not  more  than  one  half  of  its  value 
should  be  loaned  by  the  company  on  property,  prevents  the  best 
proposals  being  made.  It  is  of  the  first  importance,  for  the  repu- 
tation of  the  company  and  to  its  security,  that  its  capital  should 
be  disposed  of  in  the  most  unexceptionable  manner,  and  the  com- 
mittee have  given  their  anxious  attention  to  plans  for  securing  ef- 
fectually this  desirable  object.  The  committee  recommend  the 
board's  offering,  as  an  inducement  to  the  subscribers  to  the  stock, 
themselves  to  secure  the  capital,  that  they  shall  be  allowed  each 
of  them  to  pay  for  the  stock  held  by  them,  in  bonds  and  mortga- 


5 


ges  at  five  per  cent,  with  the  condition  that  if  the  bonds  and  mort- 
gages are  not  given  by  the  subscriber  himself,  he  shall  secure  them 
by  his  own  guarantee.  To  enable  this  to  be  done  according  to  the 
terms  of  the  charter,  it  is  recommended  that  it  be  ordered  that 
any  stockholder,  wishing  to  secure  the  amount  of  his  stock  sub- 
scribed, shall,  before  the  first  day  of  July  next,  sign  a  contract 
himself,  or  by  his  agent,  with  the  company  so  to  do,  and  that  each 
stockholder  shall,  in  the  first  instance,  have  the  right  to  give  a  bond 
and  mortgage  in  the  city,  or  in  the  country,  in  the  order  in  which 
he  subscribes  the  above  agreement,  till  $500,000  is  secured  in  the 
city  or  in  the  country,  and  then  in  that  one  of  them  only  in  which 
there  shall  remain  a  deficiency."  Accordingly,  by  order  of  the 
board,  the  following  notice  was  published  in  several  of  the  city 
papers,  and  in  the  state  paper. 

"  Notice  is  hereby  given  to  the  stockholders  of  the  New- York 
Life  Insurance  and  Trust  Company,  that  according  to  previous 
notice,  each  stockholder  will  be  allowed  to  secure  the  amount  due 
on  his  stock  on  the  first  day  of  October  next,  as  stated  in  the  re- 
solution of  May  15th,  1830,  and  inasmuch  as  the  charter  requires 
that  one  half  of  the  capital  should  be  invested  in  the  country, 
further  notice  is  hereby  given,  that  each  stockholder  will  be  per- 
mitted to  secure  the  amount  due  on  his  stock,  either  in  town  or 
country,  in  the  order  in  w  hich,  after  the  16th  day  of  July,  he  shall 
declare  in  writing,  at  the  office  of  the  company,  which  he  will  do  ; 
and  when  a  number  of  stockholders  have  so  declared  their  inten- 
tions, sufficient  to  make  the  sum  secured  in  the  country  and  what 
is  already  so  secured,  equal  to  $500,000,  then  the  remaining  stock- 
holders will  only  be  allowed  to  secure  in  the  city ;  and  if  a  number 
of  stockholders  first  elect  to  secure  in  the  city  what  is  due  by  them 
sufficient  to  make  the  amount  to  be  secured,  with  what  is  already 
then  secured,  equal  to  $500,000,  then  the  remaining  stockholders 
will  be  allowed  to  secure  in  the  country  only.  And  notice  is  fur- 
ther given,  that  each  stockholder  determining  to  secure  the  amount 
due  by  him,  must,  previous  to  the  first  day  of  October,  satisfy  the 
committee  as  to  the  amount  of  the  security  he  offers,  and  the  coun- 
sel of  the  board  as  to  title,  or  the  bond  and  mortgage  he  offers  will 
not  be  received  in  payment  on  that  day. 

"The  purchasers  of  stock  after  the  election  is  made,  will  take  it 
subject  to  the  election  of  the  stockholder  from  whom  the  purchase 
was  made." 


6 


This  advertisement,  and  the  previous  resolutions,  induced  nine- 
teen of  the  stockholders  only,  to  take  advantage  of  the  offer  made 
them.  Money  was  so  abundant  in  the  market,  that  even  the  offer 
of  receiving  in  payment  their  bonds  and  mortgages,  at  five  percent 
interest,  did  not  afford  a  sufficient  temptation  to  induce  its  general 
acceptance. 

Ten  per  cent  had  been  paid  on  subscription  to  the  stock, 


In  addition  to  these  measures,  the  trustees,  at  a  meeting,  on  the 
16th  June,  as  soon  as  they  had  time  to  make  the  proper  inquiries, 
appointed  two  gentlemen  in  Onondaga,  two  in  Ontario,  one  in 
Tioga,  one  in  Columbia,  one  in  Greene,  one  in  Dutchess,  and  one 
in  Oneida,  through  whom  applications  might  be  made  to  the  com- 
pany for  loans,  and  in  whose  opinion  as  to  the  propriety  and  safety 
of  the  loans  the  trustees  had  confidence.  Since  then  they  have 
appointed  other  gentlemen,  in  several  other  counties,  to  act  in  the 
same  capacity.  To  all  or  most  of  these,  it  is  believed,  they  stated 
the  desire  of  the  trustees  to  loan  their  capital  as  soon  as  it  could 
be  done  safely  and  securely,  and  their  anxiety  to  receive  advanta- 
geous and  suitable  applications.  Notwithstanding  their  exertions, 
and  notwithstanding  no  loan  believed  to  be  sufficiently  secured 
had  on  the  first  of  March  been  rejected,  that  investment  is  not  yet 
completed,  although  it  is  believed  it  will  be,  or  very  nearly  so, 
when  all  the  loans  agreed  to  shall  be  formally  concluded. 

The  following  is  a  statement  of  all  the  investments  of  capital 
completed  on  the  first  day  of  March,  1831,  and  of  the  amounts 
loaned  in  each  county  as  nearly  as  can  be  ascertained.  The  loans 
being  generally  for  one  year,  with  the  understanding  that  they 
will  be  continued  as  long  as  convenient  to  the  party  borrowing, 
and  while  the  security  remains  the  same  it  was  at  the  time  of 
making  the  loan,  and  the  interest  regularly  paid. 


Nineteen  stockholders  secured 
Cash  paid  in,  


$100,000 
179,600 
720,400 


$1,000,000 


New-York, 


$118,400 


do       to  stockholders, 


73,650 
27,514 
78,950 
10,000 


Albany, 


do  to  stockholders, 
Kings  county,.  


7 

Columbia,   $59,019 

Ontario,   95,095 

Westchester,   11,700 

Putnam,   2,000 

Oneida,   25,520 

Tompkins,  about   10,450 

Madison,   2,500 

Erie,   40,200 

Delaware,   600 

Monroe,   45,350 

Oswego,   12,200 

St.  Lawrence,   2,300 

Saratoga,   18,000 

Rensselaer,   3,000 

Livingston,   17,650 

Steuben,   2,250 

Franklin,   5,000 

Washington,   4,000 

Wayne,   23,229 

Cayuga,   8,125 

Broome,   1,000 

Dutchess,   20,800 

Seneca,   12,475 

Sullivan,   500 

Yates,   11,815 

Tioga,   7,150 

Montgomery,    9,500 

Otsego,   8,000 

Herkimer,   9,600 

Greene,   3,000 

Orleans,  t  1,000 

Niagara,   4,400 

Jefferson,   1,000 

Chenango,   1,950 

On  the  first  of  March,  therefore,  $785,764  were  invested  ac- 
cording to  the  requirements  of  the  charter;  since  then  a  further 
sum  of  $36,136.14  has  been  invested,  leaving  still  $178,099.86  of 
the  capital  uninvested. 


This  last  sum  the  trustees  believe  will  also  be  invested  in  the 
course  of  a  short  time.    They  have  actually  engaged  to  loan  be- 


8 


yond  this  sum,  but  it  frequently  happens  that  applicants  omit  to 
complete  the  loans  for  which  they  contracted,  and  it  is  not  im- 
probable there  may  be  a  failure  of  some  of  the  loans  now  pro- 
mised. The  trustees  have  done  their  best  to  accomplish  the  in- 
vestment of  their  capital  rapidly  and  securely,  and  believe  that  the 
Chancellor  will  see  in  the  above  detail,  that  their  exertions  have 
been  unremitting. 

In  commencing  business,  and  in  fixing  the  rules  by  which  the 
institution  should  be  governed,  the  trustees  have  been  anxious  to 
confine  their  operations  to  the  important  objects  they  had  in  view 
when  they  requested  a  charter  from  the  Legislature.  They  had 
no  wish  the  company  should  be  made  use  of  as  a  place  of  deposit 
for  the  money  employed  in  the  mercantile  business  of  the  city  or 
country.  It  was  their  object  to  afford  to  individuals  the  means  of 
safely  and  profitably  employing  funds  destined  for  the  support  of 
children,  women,  and  families ;  funds  in  the  hands  of  trustees,  or 
waiting  the  decision  of  courts ;  funds  placed  with  them  by  order  of 
the  Court  of  Chancery  ;  funds  which  might  be  temporarily  unem- 
ployed, and  seeking  future  employment,  or  placed  with  them  by 
the  wealthy  for  the  purposes  of  security  and  income. 

That  they  might  attract  these  funds,  the  trustees  adopted  at  a 
meeting,  the  6th  of  May,  1830,  the  following  by-law  : 

No  sum  of  money  of  a  less  amount  than  $100  shall  be  received 
in  deposit,  nor  paid  out,  unless  as  the  balance  on  an  account. 

And  at  a  meeting  held  June  l£th,  1830,  the  following  by-laws: 

1st.  All  moneys  deposited  in  trust  for  a  shorter  term  than  one 
year,  shall  be  deposited  for  a  certain  number  of  months,  not  less 
in  any  case  than  two  months  from  the  date  of  the  deposit. 

2d.  Interest  at  the  rate  of  three  per  cent  per  annum  will  be  al- 
lowed on  moneys  not  deposited  for  a  longer  term  than  four  months. 
Where  the  term  shall  exceed  four  months,  and  be  less  than  a  year, 
four  per  cent  will  be  allowed.  Where  the  deposit  shall  exceed  a 
year,  the  rate  of  interest  shall  be  settled  by  special  agreement. 

3d.  In  all  cases  where  the  moneys  in  trust  shall  not  be  withdrawn 
at  the  expiration  of  the  trust,  they  shall  remain  with  the  company 
for  another  period  of  not  less  than  thirty  days,  and  be  allowed  the 
same  interest  as  if  originally  deposited  for  the  extended  period. 


9 


4th.  When  the  trust  shall  exceed  a  year,  interest  may  be  made 
payable  before  the  principal  shall  become  due,  aunually,  half  year- 
ly, or  quarterly,  as  may  be  agreed  on. 

5th.  When  the  trust  shall  be  for  a  shorter  term  than  a  year,  no 
interest  will  be  paid  until  the  principal  shall  become  due. 

6th.  When  moneys  so  deposited  in  trust  for  a  period  less  than 
a  year  shall  have  remained  in  deposit  for  sixty  days,  the  same  may 
be  withdrawn  at  any  time  thereafter,  and  before  the  period  for 
which  the  deposit  was  originally  made  ;  but  in  such  cases,  no  inte- 
rest will  be  paid  on  such  deposit. 

7th.  The  above  conditions  shall  not  extend  to  moneys  deposited 
by  order  of  the  Court  of  Chancery,  or  other  court,  on  which  mo- 
neys interest  will  be  paid  according  to  the  terms  of  the  charter. 

Further  to  induce  long  deposits,  the  trustees  at  their  meeting  the 
4th  of  January,  1831,  determined  that  they  would  allow  four  and 
one-half  per  cent  for  moneys  deposited  for  a  year  and  over. 

The  trustees  also  resolved  at  a  meeting  held  on  the  1st  of  Feb- 
ruary, that  no  deposit  over  $1,000  should  be  withdrawn  without 
three  days  notice. 

By  the  general  observance  of  these  rules,  the  trustees  find  their 
deposits  are  of  the  character  they  hoped  they  would  be. 

On  examination  of  their  books,  it  appears  that  on  the  first  of 
March  they  had  in  deposit, 


$197,628 

00 

67,828 

00 

20,132 

25 

24,716 

00 

320,000 

00 

16,064 

00 

74,828 

00 

22,650 

00 

2,000 

00 

Thirteen  deposits  for  children,  to  accumulate, 

4,484 

12 

5,000 

00 

Amount  carried  forward, 


2 


10 


Amount  brought  forward,   $ 

From  individuals  not  known,  and  believed, 
with  two  exceptions,  not  to  be  merchants ; 
one  of  those  two  declaring  that  he  deposited 
the  money  to  pay  for  a  house  in  the  spring, 
the  other  that  he  deposited  it  for  a  friend,  . .    157,295  94 


$912,626  31 

It  might  be  supposed  that  the  above  sum  of  $320,000  deposited 
by  country  banks,  if  not  placed  in  this  institution,  would  have  been 
deposited  in  the  banks  of  the  city ;  but  this  is  at  least  doubtful, 
many  of  the  city  banks,  it  is  believed,  refuse  to  allow  any  interest 
on  balances  in  favor  of  country  banks,  and  the  funds  in  question 
would  have  been  otherwise  employed 7  or  would  have  remained 
wholly  unproductive.  The  advantages  derived  both  to  the  banks 
and  to  the  public  from  this  institution  consenting  to  receive  and 
allow  interest  on  deposits  of  this  character,  are  too  obvious  to  re- 
quire to  be  stated.  It  is  an  arrangement  which,  whilst  it  is  cal- 
culated to  add  greatly  to  the  general  security  of  the  banking  sys- 
tem, tends  not  to  diminish  but  to  increase  its  legitimate  profits. 

Another  view  of  these  deposits  confirms  the  fact,  that  none  of 
them  are  of  a  mercantile  character.  Merchants  require  the  com- 
mand of  their  money.  The  nature  of  business  requires  that  its 
funds  should  be  forthcoming  on  demand.  Money,  therefore,  which 
is  put  out  of  the  control  of  its  owner  for  any  length  of  time,  cannot 
be  the  money  of  commerce. 

The  books  of  the  company  show  that  the  deposits,  on  the  1st  of 
March,  with  the  company,  w  ere 

For  sixty  days  and  over,  ►   $27,012  45 

Five  months  and  over,   844,188  38 

One  year  and  over,   36,936  36 

To  accumulate  for  children,   4,489  21 


$912,626  31 

A  remark  may  here  be  made  which  will  account  for  the  large 
amount  deposited  for  five  months  and  over.  The  highest  interest 
the  company  offered  in  the  commencement  of  its  operations,  wrhile 
they  were  endeavoring  to  ascertain  what  their  rules  ought  to  be, 
was  four  per  cent,  and  to  that  interest  a  party  had  a  right  who  de- 


II 


posited  for  five  months.  The  consequence  was,  all  deposited  for 
five  months,  retaining  the  control  over  their  money  after  that  pe- 
riod. It  may  be  necessary  to  explain  farther  why  the  deposits  are 
for  five  months  and  not  four.  It  will  be  perceived  that  the  rule  is, 
"  where  the  term  exceeds  four  months,  and  is  less  than  a  year, 
four  per  cent  will  be  allowed."  It  is  another  rule,  that  "  all  mo- 
neys in  trust  for  a  shorter  period  than  one  year,  shall  be  deposited 
for  a  certain  number  of  months."  Therefore,  to  obtain  an  interest 
of  four  per  cent,  the  deposit  must  be  for  five  months.  The  in- 
crease of  interest  for  deposits  of  a  year,  has  had  the  effect  of  in- 
creasing those  deposits,  and  will,  in  all  likelihood,  diminish  those 
of  five  months  in  proportion- 

An  evidence  of  this  is,  that  $330,336  of  the  deposits  of  five 
months,  though  the  period  of  deposit  has  expired,  have  not  been 
withdrawn.  They  will  probably  be  continued  at  the  rate  of  four 
and  one-half  per  cent,  when  it  is  more  generally  understood  the 
company  gives  that  interest :  At  present  they  may  be  withdrawn 
after  thirty  days,  on  demand. 

On  the  1st  of  January,  the  deposits  for  a  year  amounted  to 
$2,541;  on  the  1st  of  March,  to  $36,936.36.  The  increase  of 
yearly  deposits  w  ill  effect  the  object  intended,  and  enable  the  com- 
pany, with  safety,  to  loan  a  greater  proportion  of  their  funds,  both 
in  city  and  country,  on  bonds  and  mortgages. 

The  company's  books  show  that  the  largest  amount  of  monthly 
deposits  was  in  the  commencement  of  their  business,  and  that  with 
the  exception  of  deposits  from  banks,  they  have  gradually  decreas- 
ed since.  Whan  the  company  began  its  operations,  considerable 
funds  in  the  hands  of  executors  and  trustees  were  probably  wait- 
ing an  investment. 

Payments  on  account  of  deposits  in  trust. 


In  June,   $ 

July,  

August,   3,476  23 

September,  « ,  t  <  e  <   19,032  57 

October,   30,124  52 

November,   29,130  00 

December,   27,890  00 

January,   43,811  00 

February  to  1st  March,   20,100  00 


12 


Deposits  in  trust  received. 

In  June,   $49,800  00 

July,    251,202  52 

August,    95,159  45 

September,   74,305  65 

October,  including  $50,000  deposited  by  bank,. . .  147,130  65 

November,   86,018  08 

December,  including  $200,000  deposited  by  bank, .  260,433  47 

January,  including  $70,000  deposited  by  bank, . . .  1 16,896  94 

February  to  1st  March,   39,401  50 


Having  thus  shown  the  manner  in  which  they  have  disposed  and 
are  disposing  of  their  capital,  and  the  character  and  nature  of  their 
deposits,  the  trustees  beg  leave  to  show  the  manner  in  which  they 
have  disposed  of  those  funds  which  have  been  placed  with  them  in 
trust. 

By  their  charter,  the  trustees  are  authorised  to  invest  the  mo- 
ney received  by  them  in  trust,  in  the  public  stocks  of  the  United 
States  or  of  any  individual  State,  or  in  the  stock  of  any  incorpo- 
rated city,  or  of  the  Bank  of  the  United  States,  or  in  such  other 
real  or  personal  security  as  they  may  deem  proper,  but  the  said 
company  shall  not  hold  stock  in  any  private  incorporated  compa- 
ny, beyond  twenty-five  thousand  dollars. 

The  most  suitable  and  appropriate  security  for  moneys  depo- 
sited in  trust,  the  trustees  Believe  to  be  real  security,  and  it  has 
been  the  uniform  sentiment  expressed  at  the  board,  that  they 
should  invest  such  proportion  of  their  funds  as  they  could  with 
safety  to  themselves  and  to  the  public,  in  bonds  and  mortgages. 
They  accordingly  loaned,  some  months  since,  a  portion  of  those 
funds,  amounting  to  $30,300,  on  bonds  and  mortgages,  and  have, 
for  several  weeks,  been  negotiating  another  loan  which,  since  the 
first  of  March,  has  been  completed,  amounting  to  $130,000,  $90,000 
of  which  is  to  be  paid  in  the  course  of  the  month  of  March,  and 
the  balance  in  proportion  as  a  certain  building  to  be  erected  in  the 
city  of  New-York  advances.  If  the  trustees  have  not  gone  farther 
in  disposing  of  their  trust  money  on  real  security,  it  has  arisen 
from  the  circumstance  that  their  whole  exertions  have  been  direct- 
ed to  investing  their  capital.  This  was  the  first  great  object,  and 
every  loan  thought  worthy  of  attention,  where  possible,  was  ap- 
plied to  capital.  In  loaning  trust  moneys  upon  real  security,  the 
trustees  have  determined,  unless  where  the  security  is  most  un- 


IS 


doubted,  as  a  general  rule,  to  follow  the  provisions  of  their  char- 
ter in  relation  to  the  capital,  and  to  require  that  the  property  shall 
be  at  least  double  in  value  the  sum  advanced.  No  suitable  loans 
of  this  description,  on  the  1st  of  March,  had  been  rejected,  but  all 
that  had  been  made  had  been  absorbed  by  the  capital. 

Had  it  been  practicable  to  extend  their  loans  of  trust  moneys 
upon  bond  and  mortgage,  the  trustees  would  have  felt  it  their  du- 
ty, in  the  infancy  of  the  institution,  to  have  abstained,  in  a  great 
measure,  from  loans  of  this  description.  Such  loans  it  is  always 
expected,  will  be  permitted  to  remain  for  a  considerable  period, 
and  they  are  thus  by  their  character  placed  out  of  the  control  of 
the  trustees,  as  funds  applicable  to  payments  which  the  company 
is  constantly  bound  to  meet.  It  is  obvious  that  only  that  propor- 
tion of  the  trust  moneys  can  be  invested  in  permanent  loans 
which  can  be  relied  on  as  a  permanent  deposit,  and  what  that 
proportion  is,  time  and  experience  are  requisite  to  show.  The 
trustees  would,  therefore,  have  been  restrained  from  extend- 
ing their  loans  of  this  description,  by  the  fear,  whilst  the  institu^ 
tion  was  young,  before  the  character  of  its  deposits  was  known, 
while  the  great  proportion  of  them  was  for  five  months,  when  ex- 
perience had  not  taught  whether  they  were  intended  for  longer 
continuance,  nor  what  might  be  calculated  on  as  the  average  of 
deposits,  and  while  the  company  was  liable  to  calls  at  short  no- 
tice, that  they  might  be  placed  in  temporary  difficulty,  and  be 
obliged  to  urge  their  credit  for  the  purpose  of  meeting  the  de- 
mands made  on  them.  It  is  clearly  the  interest  of  the  company 
to  invest  on  bond  and  mortgage.  Beside  the  better  security,  a  high- 
er interest  is  obtained  both  in  city  and  country  for  loans  on  bonds 
and  mortgage,  than  for  loans  on  personal  security  in  the  city, 
where  vast  capitals  in  the  hands  of  individuals,  imported  capital 
from  Boston  and  other  cities,  the  funds  of  insurance  offices,  banks, 
and  other  companies,  coming  together  in  the  market,  create  a 
competition,  and  reduce  interest  to  the  very  lowest  rate. 

For  these  reasons  the  trustees  have  been  anxious  to  invest  their 
trust  money  in  bonds  and  mortgages,  and  to  go  as  far  in  doing  so 
as  they  can  with  prudence.  But  were  they  to  do  it  hastily,  and 
before  they  had  ascertained  how  far  they  could  go  with  safety, 
they  might  be  brought  into  the  necessity  of  borrowing  large  sums, 
which  would  be  injurious  to  their  reputation,  or  of  oppressing 


14 

their  debtors  on  bond  and  mortgage,  by  demands  for  immediate 
payment,  which  they  earnestly  wish  to  avoid. 

In  the  commencement  of  its  operations,  the  company  had_ 
thrown  upon  It  a  large  amount  of  moneys,  which  had  probably 
been  lying  idle  for  the  want  of  some  safe  investment.  This,  com- 
ing at  the  same  moment  when  they  were  engaged  in  seeking  in- 
vestments for  their  capital,  forced  upon  the  company  the  necessi- 
ty of  investing  a  larger  proportion  of  their  trust  money  in  personal 
securities,  than  it  will  be  their  interest  or  inclination  to  do  in  fu- 
ture. 

That  the  investment  of  a  certain  proportion  of  their  funds  in 
personal  securities,  has  been,  and  will  at  all  times  be  necessary,  to 
the  utility  and  safety  of  the  company,  and  that  its  business  cannot 
be  conducted  without  the  power  to  do  so,  it  is  scarcely  neeessary 
to  show  to  those  acquainted  with  the  operations  of  a  monied  in- 
stitution. 

The  trust  company  undertakes  to  allow  an  interest  on  all  mo- 
neys deposited  with  them.  To  enable  them  to  meet  the  payment  of 
this  interest,  the  trustees  must  find  an  immediate  employment  for 
the  funds  left  with  them,  nor  could  they  afford  to  wait  the  slow 
progress  of  investment  in  bonds  and  mortgages.  How  slow  this 
is,  will  be  seen  by  a  reference  to  the  statement  which  has  been 
made  of  the  progress  of  the  company  in  investing  the  capital. 
The  deposits  in  trust  amounted,  on  the  first  of  March,  to  $912,- 
626.31 ;  the  interest  on  almost  the  whole  of  this  allowed  to  de- 
positors, is  four  per  cent,  and  amounted  on  the  1st  of  March,  to 
about  $12,462.20.  What  would  have  been  the  situation  of  the 
company  had  the  trustees  allowed  this  money  to  lie  idle,  or  had 
they  been  forced  to  wait  until  they  could  have  disposed  of  it  on 
landed  security  ?  It  is  not  difficult  to  see  that  a  dependence  on 
investments  in  real  securities  alone,  would,  without  reference  to 
other  objections,  by  the  mere  operation  of  an  interest  accumulat- 
ing against  it,  lead  to  its  ruin, 

The  trustees,  at  one  of  their  earliest  meetings,  took  into  consi- 
deration the  subject  of  investments  in  personal  securities. 

The  first  question  to  be  decided  was,  whether  it  was  prudent 
for  them  in  the  situation  in  which  the  stock  market  then  was,  to 


15 


invest  in  such  stocks  as  they  were  authorised  to  invest  in,  and  the 
trustees  decided  that  it  was  not. 

It  is  well  known,  that  owing  to  the  increased  capital  of  the 
country,  the  very  low  price  of  every  article  of  commerce  and  ne- 
cessary of  life,  and  to  the  great  accumulation  in  New-York  of  fo- 
reign capital  from  Boston  and  other  cities,  as  well  as  from  Europe, 
there  has  been,  ever  since  the  company  began  its  operations,  more 
money  in  the  New- York  market  than  its  wants  required.  The 
holders  of  this  capital,  a  great  part  of  it  intended  for  future  mer- 
cantile operations,  desirous  of  finding  for  it  a  temporary  employ- 
ment, have  contributed,  by  contending  for  them,  to  raise  all  the 
stocks  of  the  country  to  an  unusual  price,  and  to  one  which  they 
will  not  probably  sustain,  should  there  be  a  favorable  change  in 
the  commercial  concerns  of  the  country.  That  such  a  change 
was  not  improbable,  the  trustees  determined  from  the  disturbed 
state  of  Europe  ;  nor  did  they  think  it  impossible  that  a  very  short 
time  would  elapse  before  a  call  might  be  made  for  all  the  resources 
of  our  merchants  to  supply  the  armies  and  population  of  that 
part  of  the  world  with  those  necessaries  which  our  fertile  and 
happy  country  would  abundantly  supply.  Should  this  be  the  case, 
it  was  the  opinion  of  the  trustees,  that  the  stocks  of  the  country 
would  be  thrown  in  large  quantities  into  the  market,  and  in  the 
struggle  of  the  mercantile  portion  of  society  to  realize  their  capi- 
tal, that  they  would  necessarily  fall.  The  trustees,  on  examina- 
tion found,  that  what  with  the  expenses  of  brokerage  in  the  pur- 
chase and  sale,  and  what  with  the  high  price  of  the  best  stocks, 
there  were  few  the  purchase  of  which  would  enable  them  to  re- 
alise the  interest  they  were  paying  to  their  depositors.  That  be- 
sides this,  they  must  run  the  risk,  almost  amounting  to  certainty, 
of  their  future  fall.  They  determined  it  was  their  duty  to  be  safe, 
that  they  were  bound  to  run  no  risk  which  they  could  avoid,  and 
that  the  reputation  of  the  institution  forbade  their  entering,  on  any 
occasion,  into  the  field  of  speculation.  They,  therefore,  determin- 
ed not  to  become  the  purchasers  of  stock,  excepting  in  one  in- 
stance, where  a  whole  loan  to  the  city  of  Albany,  amounting  to 
$60,000,  bearing  an  interest  of  five  per  cent,  was  offered  to  them 
on  the  21st  of  last  July,  at  an  advance  of  one  per  cent.  This  be- 
ing a  stock  not  in  the  market,  perfectly  secure,  where  the  interest, 
though  small,  would  be  paid  regularly,  and  offered  nearly  on  the 
original  terms  of  the  loan,  the  trustees  considered  a  prudent  and 
safe  investment,  and  therefore  took  it  from  the  party  who  had 


16 


contracted  for  the  loan.  With  this  exception,  the  trustees  have 
invested  none  of  their  money  in  stocks.  Had  they  done  so,  it 
must  have  been  with  the  intention  either  of  holding  the  stocks 
purchased  by  them  as  a  permanent  investment,  and  then,  after 
having  bought  when  the  market  was  the  highest,  they  must 
have  run  the  risk  of  a  depreciation,  and  of  the  accidents  attending 
that  species  of  property,  or  they  must  have  done  so  with  the  in- 
tention of  watching  the  rise  and  fall  in  the  market,  of  selling,  buy- 
ing, and  exchanging,  as  their  judgment  or  information  might  di- 
rect, and  of  entering  upon  all  the  chances  and  anxieties  of  stock- 
jobbers. The  first,  as  has already  been  shown,  would  have  been 
opposed  to  that  safe  system  which  it  is  the  wish  of  the  trustees  to 
pursue,  and  the  latter  would  have  been  inconsistent  with  the  ob- 
jects and  principles  of  the  institution. 

That  it  would  be  unsafe  to  invest  the  whole  of  their  deposits  in 
real  securities  while  they  were  liable  to  calls  at  the  end  of  a  few 
months  for  the  deposits  of  individuals,  and  w  hile  they  were  liable 
on  demand  for  deposits  made  by  order  of  courts  or  the  Chancellor, 
which  they  had  subjected  themselves  to  for  public  convenience. 
The  impossibility  of  investing  on  real  estate  rapidly,  and  the  con- 
sequent ruin  if  attempted,  together  with  the  circumstances  which 
made  it  imprudent  to  purchase  stocks,  rendered  it  incumbent  on 
the  trustees  to  seek  investments  on  other  personal  securities. 

As  to  their  power  thus  to  invest  the  funds  in  question,  the  trus- 
tees neither  did  nor  could  entertain  a  doubt.  The  terms  of  the 
charter  are  express  and  free  from  all  ambiguity.  As  the  section 
which  authorises  the  trustees  to  invest  the  moneys  received  in  trust 
in  real  or  personal  securities,  had  already  given  a  qualified  right 
of  investment  in  every  species  of  stock,  public  and  private,  the 
personal  securities  referred  to  could  in  their  judgment  only  mean 
bonds,  promissory  notes  or  other  evidences  of  debt,  creating  a  per- 
sonal liability,  and  not  accompanied  by  a  pledge  of  real  estate. 
There  is  no  other  construction  that  can  give  effect  to  the  words, 
nor  (until  rumor  informed  them  it  had  been,)  did  the  trustees  sup- 
pose that  either  the  existence  of  this  powor,  or  the  propriety  of  its 
exercise,  could  ever  be  drawn  in  question. 

The  trustees,  therefore,  took  into  consideration  the  safety  of 
loaning  on  the  personal  security  of  individuals,  and  they  came  to 
the  conclusion,  that  the  personal  security  of  men  of  known  charac- 
ter and  wealth,  especially  when  the  loan  was  made  payable  within 


17 


a  moderate  period,  was  among  the  safest  and  best  which  the  coun* 
try  afforded,  and  if  not  quite  equal  to  the  security  of  real  estate, 
approaching  very  near  to  it. 

On  the  receipt  of  money  by  the  company,  it  has  been  the  prac- 
tice to  find  for  it  an  immediate  investment,  by  offering  it  at  a  low 
rate  of  interest,  frequently  at  four  per  cent  on  a  note  payable  on 
demand,  and  generally  secured  by  stock.  In  this  situation  it  has 
been  permitted  to  remain  till  an  opportunity  has  offered  of  dispo- 
sing of  it  on  more  favorable  terms.  When  such  opportunity  has 
occurred,  the  money  has  been  called  in,  and  beside  loaning  on  real 
estate,  the  trustees  have  loaned  on  the  simple  bond  of  the  party, 
or  if  notes  have  been  offered  them,  they  have  taken  notes,  deduct- 
ing the  interest  at  the  time  the  note  was  taken,  but  without  the 
responsibility  of  the  individual  to  whom  the  loan  was  made.  They 
have  also  loaned  on  notes,  the  interest  payable  at  the  end  of  the 
term  for  which  the  notes  were  given,  taking  as  collateral  security 
either  some  stock  considerably  below  its  market  value,  or  a  num- 
ber of  notes  of  individuals,  or  a  single  note  if  it  was  believed  to  offer 
an  ample  and  sufficient  security.  All  notes  belonging  to  the  com- 
pany are  placed  in  the  Manhattan  bank  for  collection ;  if  the  notes 
given  or  the  collaterals  are  paid,  the  amount  is  credited  to  the 
borrower,  and  his  debt  cancelled  or  returned  him.  In  these,  and 
these  modes  only,  have  the  company  invested  in  personal  securi- 
ties. In  all  instances  they  have  been  satisfied,  provided  they  ob- 
tained perfect  security  with  a  moderate  rate  of  interest,  often  four 
per  cent, generally  five  or  five  and  one-half;  nor  have  they,  in  any 
one  instance,  where  they  have  invested  money  in  personal  securi- 
ties, received  beyond  six  and  one-half  per  cent,  and  that  only  on  a 
small  amount  where  the  length  of  the  loan  was  eight  and  ten 
months,  and  the  consequent  increase  of  risk  warranted  them  in 
doing  so.  That  the  trustees  have  not  been  mistaken  in  the  secu- 
rity they  have  taken,  is  proved  by  the  circumstance  that  they  have 
not  lost  a  dollar,  in  any  of  their  transactions,  since  the  commence- 
ment of  their  operations. 

On  examining  the  books  of  the  company,  it  will  be  found  a  large 
amount  has  constantly  been  loaned,  payable  on  demand,  secured 
by  stocks  which  may  be  considered  in  the  nature  of  a  deposit. 

Of  this  class  there  was  loaned  in  the  month  of 


June, 
July, 


$8,000  00 
126,832  00 


3 


18 


August, 


$92,874  96 
158,675  52 
293,729  06 
230,879  16 
253,543  19 
182,168  76 
152,100  76 


September, 
October,  .. 


November, 
December, 
January,  . , 


February, 


Besides  these,  the  greatest  portions  of  the  company's  loans  have 
been  made  on  notes  having  4, 5, 6,  7,  8,  9  and  10  months  to  run. 

On  the  1st  of  March,  the  notes  to  the  company  were  in  the  fol- 
lowing proportion : 


Such  long  notes,  though  inconvenient  if  not  unsafe  in  the  opera- 
tions of  banking,  are  not  so  in  the  operations  of  a  trust  company, 
where  the  deposits  are  for  long  and  limited  periods,  where  an  inte- 
rest is  paid  for  such  deposits,  where  no  notes  are  issued,  where 
there  is  no  circulation,  where  nothing  can  be  withdrawn  without 
notice,  where  there  is  no  risk  of  sudden  demand,  and  where  the 
capital  is  not  only  paid  in,  but  invested  on  real  security ;  such 
notes  to  such  a  company  have  no  danger  in  them,  while  a  bank 
which  deals  in  them  is  continually  threatened  with  calls  for  funds, 
placed  beyond  their  reach  by  this  disposal  of  them  on  long  loans. 

In  further  reply  to  the  inquiries  made  by  the  Chancellor,  the 
trustees  answer : 

1st.  That  it  is  believed  that  much  the  greatest  portion  of  the 
stock  is  out  of  the  market,  and  held  by  individuals  who  intend 
holding  it  as  a  permanent  investment.  That  the  present  number 
of  their  stockholders  is  131,  of  whom  27  are  females,  trustees  or 
miners,  holding  734  shares ;  25  are  residents  out  of  the  city,  hold- 
ing 2,638  shares,  and  the  remainder  are  chiefly,  it  is  believed,  resi- 


Notes  of  sixty  days, 


$90,558 
115,925 
123,323 
151,082 
231,193 
146,590 
68,707 
44,780 
6,364 


Ninety  days,  . 
Four  months, 
Fve  months,  . 
Six  months, . . 
Seven  months, 
Eight  months, 
Nine  months, 
Ten  months, . 


dents  of  the  city  of  New-York,  though  many  are  not  known  ot 
ascertained  to  he  so. 

2d.  That  the  company  hold  no  real  estate  whatever. 

3d.  The  company  had,  on  the  1st  of  March,  insured  37  lives, 
and  have  received  for  insuring  the  same,  $6, 817. 13;  should  all 
the  parties  die  within  the  period  of  insurance,  they  will  be  liable 
to  pay  ninety-seven  thousand  nine  hundred  dollars.    It  will  be 
proper  here  to  mention,  that  the  sum  of  $6,817.13  is  not  the  an- 
nual amount  paid  for  the  insurance  of  ninety-seven  thousand  nine 
hundred  dollars,  but  includes  the  full  amount  paid  down  on  the 
insurance  of  the  whole  lives  of  two  of  the  parties  insured.  This 
branch  of  the  company's  business  has  received  the  unremitting  at- 
tention of  the  trustees,  and  they  have  been  gratified  in  finding  both 
by  the  gradual  increase  of  insurance,  and  the  inquiries  made  at 
the  office  that  it  is  attracting  more  and  more  public  attention.  In 
a  subsequent  part  of  this  report  it  will  be  found  that  additional 
lives  have  been  insured  since  the  1st  of  March.    It  cannot  be 
doubted  but  as  the  security  which  insurance  offers  to  families,  and 
the  comforts  it  brings  to  old  age  are  better  understood,  the  com- 
pany's utility  will  be  equal  in  this  with  what  it  is  in  the  other 
branches  of  its  business.    It  was  to  be  expected  that  some  time 
would  be  required  before  information  could  be  generally  extended 
on  a  subject  so  new.    The  progress  of  the  Equitable  Society  in 
London,  which  now  secures  comfort  and  independence  to  a  large 
population,  was  not  greater  in  its  commencement  than  that  of  the 
New-York  Life  Insurance  and  Trust  Company.    Its  actuary,  in 
a  short  history  of  that  society,  published  in  1829,  states,  "that  at 
the  first  meeting  at  the  White  Lion,  in  Cornhill,  only  four  assuran- 
ces were  made ;  and  in  the  course  of  the  first  four  months,  their 
number  did  not  exceed  thirty,  nor  did  the  whole  of  the  sums  as- 
sured amount  to  more  than  £5, 100."    This  company  has  not  been 
in  operation  a  much  longer  time,  has  insured  more  lives  and  to 
four  times  the  amount.    It  has  been  suggested  that  the  company's 
tables  are  higher  than  the  safety  of  the  company  requires.  The 
subject  is  too  important  a  one  not  to  have  attracted  the  serious  at- 
tention of  the  trustees.    If  the  tables  are  too  high,  it  prevents  in- 
surance ;  upon  the  number  of  the  insured  depends  the  safety  of  the 
company.    While  it  is  few,  the  risk  is  great    It  is  decidedly  the 
interest,  therefore,  of  the  company  to  encourage  insurances  by 
making  the  tables  as  low  as  by  any  prudent  calculation  they  can 
be  made.    The  tables  by  which  the  company  have  been  governed 


20 


in  their  insurances,  are  the  same  with  those  which  have  been  used 
for  fifteen  years  in  Boston  and  Philadelphia,  and  for  100  years  by 
the  Equitable  in  London.  The  insurance  of  lives  was  a  subject 
new  to  the  trustees  as  well  as  to  the  State,  and  in  the  commence- 
ment of  their  operations  they  were  unwilling  to  vary  from  what 
the  experience  of  others  deemed  prudent  in  fixing  the  rate  of  in- 
surance. Having  been  informed  that  the  Philadelphia  company 
proposed  to  lower  their  rates,  the  president  of  this  company  has 
had  a  correspondence  with  the  actuary  of  the  Philadelphia  office 
on  the  subject  of  the  rates  which  it  would  be  prudent  to  adopt  in 
this  country.  He  has  also  received  from  the  actuary  of  one  of  the 
offices  in  Paris,  his  manuscript  calculations  and  observations  on 
the  rates  used  there. 

The  trustees  only  wait  the  fulfilment  of  the  promise  of  Mr.  Ro- 
berts, the  actuary  in  Philadelphia,  to  forward  to  them  his  views 
and  corrected  tables,  to  decide  on  the  proper  alteration  in  their 
own,  if  prudent  to  make  any.  The  whole  subject  is  at  present 
under  the  consideration  of  the  board,  and  of  the  committee  ap- 
pointed by  the  following  resolve  : 

At  a  meeting  of  the  trustees  held  3d  day  of  September,  1830, 

Resolved,  That  the  duty  of  advising  the  president  in  relation  to 
the  insurance  on  lives  and  granting  annuities  be  performed  by  the 
committee  of  trusts,  consisting  of  James  Kent,  Gulian  C.  Verplanck, 
John  Duer,  and  Thomas  J.  Oakley. 

4th.  The  company  has  purchased  no  annuity. 

5th.  The  company  has  sold  an  annuity  amounting  to  $150  per 
annum,  and  received  for  the  same  $1,185. 

6th.  The  company  had  received  on  the  1st  of  March,  from  the 
Court  of  Chancery,  its  clerks  and  surrogates,  in  deposit,  $20,132.25, 
which  amount  has  been  blended  with  the  other  moneys  in  trust,  is 
payable  on  demand,  and  bears  an  interest  from  the  day  of  deposit, 
and  with  the  other  moneys  in  trust,  is  secured  by  the  capital  of  the 
company. 

7th.  The  company  has  never  drawn  a  bill  of  exchange,  nor  pur- 
chased a  bill,  nor  taken  a  foreign  bill  as  security. 

8th.  The  company  had  invested  on  stock  and  personal  securities, 
on  the  1st  March,  $1,155,594.92. 

The  Chancellor  has  ordered,  "  that  if  the  trustess  shall  be  able 
within  the  time  limited  for  furnishing  the  statement,  that  they  also 


21 


specify  particularly  the  amount  of  each  loan  made  by  them,  the 
time  when  made,  the  nature  of  the  security  taken  therefor,  and 
the  time  when  the  same  becomes  payable  or  will  become  payable. 

The  trustees  believe  they  have  answered  all  that  is  material  in 
this  order,  though  they  have  not  added  the  specific  amount  of  each 
loan,  nor  the  time  when  made,  nor  the  time  when  each  will  become 
payable. 

To  make  such  a  statement  would  require  the  copying  a  large 
portion  of  one  of  their  books,  and  considerable  time  and  labor. 
The  trustees  will,  however,  immediately  direct  it  to  be  done, 
should  the  Chancellor  still  desire  it,  and  not  think  sufficient  the 
general  information  that  has  been  given. 

The  trustees  further  add,  that  the  copy  of  the  by-laws  sent  with 
this  report,  signed  by  the  president,  is  a  complete  copy  of  all  their 
by-laws,  and  the  copy  of  the  resolutions  also  sent,  and  signed  by 
the  president,  is  a  copy  of  all  the  resolutions  passed  at  the  board 
which  the  trustees  think  important,  or  that  the  Chancellor  could 
wish  to  have. 

The  trustees  intended,  before  the  first  year  of  the  company's 
operations  expired,  to  have  requested  of  the  Chancellor  his  direc- 
tions as  to  the  manner  in  which  he  wished  they  should  make  their 
annual  report,  and  to  have  solicited  from  him  the  appointment  of 
one  of  his  masters,  to  examine  and  verify  the  report  when  made. 

With  regard  to  the  profits  of  the  company,  it  is  impossible  to 
say  what  they  will  be.  If  the  company  divide  the  first  year  of  its 
operations,  six  per  cent,  it  will  be  the  extreme  of  what  they  will 
be  able  to  do,  and  more  than  they  are  likely  to  do.  Its  perma- 
nent expenses  are  more  easily  ascertained. 


The  expenses  of  the  company  are  : 

City  tax,   $4,000  00 

Salary  of  president,   2 , 500  00 

secretary,....   2,000  00 

"        clerk,   500  00 

Rent  of  building,  unusually  and  accidentally 

cheap,   1,000  00 

Stationary,  fuel,  postage,  and  extra  expens- 
es, may  be  put  down  at,   500  00 


$10,500  00 


22 


The  counsel  and  attorneys  to  the  board  receive  no  salary,  nor 
any  other  compensation  than  what  they  receive  in  the  usual  course 
of  their  professional  business.  The  safety  of  the  company,  and 
the  security  of  its  investments  on  real  estate,  depends  altogether 
on  the  title  being  perfect  of  the  party  applying  for  a  loan,  to  the 
property  he  proposes  to  pledge,  and  on  its  value.  It  has  been 
thought  by  the  trustees,  just  and  reasonable,  to  adopt  the  univer- 
sal practice  of  the  city,  and  of  the  country,  and  to  require  of  the 
borrower  that  he  should  bear  the  expense  necessary  to  show  his 
title  to  be  perfect,  and  free  from  all  incumbrance.  Besides  the  pro- 
priety of  this  rule,  a  contrary  practice  would  expose  the  compa- 
ny to  the  imposition  of  examining  a  great  number  of  defective  ti- 
tles, and  possibly  for  no  purpose  but  to  have  their  errors  ascer- 
tained that  they  may  be  corrected. 

With  regard  to  the  agent  of  the  applicants  to  the  company  for 
loans,  whether  it  be  one  of  those  gentlemen  whom  the  trustees 
have  pointed  out  as  persons  in  whom  they  have  confidence,  or 
whether  it  be  one  of  the  borrower's  own  choice,  the  trustees  have 
no  means  of  controlling  him  in  charging  for  his  services,  but  by 
their  urgent  advice  to  the  former,  that  he  will  make  his  charges 
moderate,  and  not  beyond  what  a  proper  remuneration  makes  ne- 
cessary, and  this  the  trustees  are  assured  is  done. 

With  regard  to  the  counsel  of  the  board,  on  whose  learning, 
vigilance,  and  accuracy,  the  best  interests  of  the  company  depend, 
the  trustees  have  been  informed  and  believe,  that  their  charges 
are  below  what  is  usual  in  the  city,  and  that  in  no  instance  have 
lhey  asked  or  received  more  than  a  reasonable  and  moderate  com- 
pensation for  any  service  rendered  by  them.  It  must,  the  trus- 
tees believe,  occur  to  others,  as  it  does  to  them,  that  whatever 
.confidence  may  be  due  to  the  talents  and  learning  of  the  bar  of 
this  State,  it  would  be  the  height  of  imprudence  in  them  to  trust 
the  examination  of  titles,  intricate  as  they  frequently  are,  to  coun- 
sel selected  by  the  applicant.  They  have  thought  it  their  duty  to 
appoint  their  own  counsel,  one  in  Albany,  and  one  in  New- York, 
and  to  make  them  responsible  for  the  titles  to  the  property  on 
which  loans  are  made,  and  for  legal  advice  in  the  affairs  of  the 
company.  That  they  should  pursue  this  course,  the  trustees 
thought  they  owed  to  their  reputation,  to  the  interests  of  the 
stockholders,  and  still  more  to  the  interests  of  those  who  have 
trusted  their  property  with  them,  and  who  place  confidence  not 


23 

only  in  the  integrity,  but  in  the  ability  with  which  the  affairs  of 
the  company  are  managed.  In  selecting  their  own  counsel,  and 
depending  for  legal  advice  on  them  alone,  the  trustees  believe 
they  will  meet  with  the  approbation  of  the  Chancellor,  and  of  all 
prudent  and  candid  men. 

Desirous  of  giving  every  information  to  the  Chancellor  within 
their  reach,  the  trustees  venture  to  state  to  him  the  proceedings 
of  the  company  subsequently  to  the  first,  as  low  down  as  to  the 
23d  day  of  March,  which  on  examination  is  found  to  be  as  fol- 
lows : 

March  24,  1831. 

Additional  Statement. 
Deposits  of  Trust,  since  1st  instant. 
By  commissioners,    $59,500  00    Payments  on  account  of  depo- 
Trustees,               6,600  00       sits  in  trust,  since  the  1st  in- 
Master  in  chance-  stant,   $53,556  00 

ry,  13,000  00 

Register  in  do. . .   5,000  00 

Females,   900  00 

Individuals  believ- 
ed not  to  be  in  bu- 
siness, 25,222  00 

In  trust  to  accu- 
mulate for  chil- 
dren, 5  deposits,  5,843  70 

$116,065  70 
Insurance  on  life  by 
three  persons,  for 
$7,000  ;  premium 
rec'd,   158  40 

Total  amount  invested  on  bond  and  mortgage, . . . . 

Loans  on  stock,  payable  on  demand,  

Gold  in  vault,  

Cash  in  bank,  

$1,100,206  07 


$821,900  14 
108,280  00 
12,175  00 
157,850  93 


The  trustees  feel  their  success  to  depend  on  public  confidence, 
and  on  the  conviction  all  their  operations  are  just  and  prudent. 


24 


Mystery  they  avoid  ;  they  solicit  examination.  And  far  from  de- 
siring to  hide  their  operations,  they  are  pleased  with  the  opportu- 
nity of  disclosing  them,  and  will  at  all  times  be  willing,  as  they 
feel  themselves  bound,  to  answer  every  inquiry  the  Chancellor 
may  think  proper  to  make  of  them. 

With  the  greatest  respect, 
By  order  of  the  trustees, 

WM.  BARD,  President. 

City  and  county  of  Albany,  ss. 

William  Bard,  president  of  the  New-York  Life  Insurance  and 
Trust  Company,  being  duly  sworn,  deposeth  and  saith,  that  the 
facts  mentioned  in  the  above  report  are,  to  the  best  of  his  know- 
ledge and  belief,  true. 

WM.  BARD,  President. 

Sworn  this  29th  day  of  March,  1831, 
Before  me, 
R.  Hyde  Walworth,  Chancellor. 

At  a  special  meeting  of  the  Board  of  Trustees,  of  the  New- 
York  Life  Insurance  and  Trust  Company,  held  24th  March,  1831 : 

PRESENT, 

William  Bard,  President,  Isaiah  Townsend, 

Benjamin  Knower,  William  James, 

Isaac  Bronson,  Peter  Harmony, 

Wm.  B.  Lawrence,  John  Rathbone,  Jun. 

Thos.  W.  Ludlow,  James  Kent, 

John  Hone,  James  McBride, 

Thos  J.  Oakley,  Peter  Remsen. 

Samuel  Thompson, 

The  president  read  to  the  board  the  report  prepared  to  be  for- 
warded to  the  Chancellor,  in  obedience  to  his  order  of  the  2d 
March,  1831  : 

Resolved,  on  motion  of  Mr.  Hone,  seconded  by  Mr.  McBride, 
that  the  trustees,  having  heard  the  report  read,  approve  the  same, 
and  direct  the  president  to  sign  it  in  the  name  of  the  trustees. 

Edw.  A.  NICOLL,  Secretary. 


COPY  OF  BY-LAWS. 


1.  There  shall  be  a  stated  meeting  of  the  trustees  on  the  first 
Tuesday  of  every  month,  to  which  a  report  shall  be  made  by  the 
president,  of  the  concerns  and  business  of  the  company  during  the 
past  month;  stating  particularly  the  contracts  that  have  been 
made,  the  sums  of  money  that  have  been  received,  and  on  what 
account,  the  manner  in  which  the  same  shall  have  been  invested, 
and  the  amount  remaining  on  hand. 

2.  The  president  may  call  a  special  meeting  of  the  trustees 
whenever  he  may  deem  it  proper.  He  shall  also  call  a  special 
meeting  whenever  any  three  of  the  trustees  shall  request  him  in 
writing  to  do  so.  Every  stated  or  special  meeting  shall  be  called 
by  a  notice  in  writing  to  each  trustee. 

3.  Nine  trustees  shall  be  a  sufficient  number  to  form  a  quorum 
for  the  transaction  of  business ;  but  no  by-law  shall  be  adopted, 
nor  any  change  or  alteration  made  in  the  by-laws  before  establish- 
ed, unless  at  a  meeting  at  which  a  majority  of  the  whole  number 
of  the  trustees  shall  be  present,  and  upon  a  report  of  a  committee 
appointed  for  that  purpose. 

4.  The  president  shall  preside  at  all  meetings  of  the  trustees. 
He  shall  be,  ex  officio,  a  member  of  all  standing  committees*  He 
shall  attend  the  meetings  of  any  special  committee  when  requir- 
ed by  the  chairman. 

5.  The  president  shall  have  the  general  direction  and  superin- 
tendence of  the  affairs  of  the  company  ;  and  in  all  cases  where  the 
duties  of  the  subordinate  officers  and  agents  of  the  company  are 
not  specially  prescribed  by  the  by-laws,  or  by  a  resolution  of  the 
board,  they  shall  obey  the  orders  or  instructions  of  the  president. 

6.  The  president  and  secretary  shall  have  power  to  make  con- 
tracts of  insurance  on  life,  and  for  granting  annuities  in  the  name 
of  the  company,  and  to  execute  the  same,  and  shall  also  have 
power  to  receive  money  in  trust,  where  the  rate  of  interest  to  be 
allowed  shall  not  exceed  four  per  cent. 

7.  The  seal  of  the  company  shall  be  under  the  exclusive  charge 
of  the  president,  and  shall  not  be  affixed  by  him  to  any  deed,  con- 
veyance, or  instrument  whatsoever,  except  certificates  acknow- 
ledging satisfaction  of  any  mortgages,  unless  by  virtue  of  a  special 
resolution  of  the  board. 

4 


26 


8.  The  president  shall  give  a  bond  for  the  faithful  performance 
of  his  trust,  with  sureties,  to  be  approved  by  the  board,  in  the  pen- 
alty of  twenty  thousand  dollars,  which  bond  shall  be  annually  re- 
newed, and  new  or  additional  sureties  may  at  any  time  be  required 
by  the  board.  Every  bond,  so  taken,  shall  be  so  drawn  as  to  re- 
main until  another  bond  be  substituted. 

9.  The  following  standing  committees,  to  consist  each  of  four 
trustees,  exclusive  of  the  president,  which  committees  shall  hold 
their  offices  until  others  are  appointed  in  their  room,  shall  be 
elected  quarterly  by  ballot,  at  a  meeting  at  which  not  less  than  a 
majority  of  the  whole  number  of  the  trustees  shall  be  present, 
namely :  a  committee  of  finance,  a  committee  of  investments,  and 
a  committee  of  trusts. 

10.  The  committee  of  finance  shall  superintend  and  direct  all 
investments  that  shall  be  made  of  the  funds  of  the  company  other 
than  its  capital,  in  stocks  and  personal  securities,  and  shall  receive 
and  audit  all  accounts  against  the  company. 

1 1 .  The  committee  of  investments  shall  superintend  and  direct 
all  investments  that  shall  be  made  of  the  capital  and  other  funds 
of  the  company,  in  bonds  and  mortgages,  or  other  real  security. 

12.  The  committee  of  trusts  shall  have  the  general  superintend- 
ance  of  all  special  trusts ;  and  no  guardianship,  receivership,  or 
other  special  trust  shall  be  accepted  by  the  president  in  behalf  of 
the  committee,  without  their  approbation  and  concurrence,  nor 
-without  their  approbation  shall  any  moneys  be  received  in  trust  on 
which  a  greater  interest  shall  be  allowed  than  four  per  cent. 

13.  The  three  standing  committees  shall  form  a  general  standing 
committee,  whose  duty  it  shall  be  to  determine  from  time  to  time 
what  funds  of  the  company,  other  than  its  capital,  shall  be  invested 
in  bonds  and  mortgages,  and  other  real  securities,  and  what  funds 
in  stocks  and  other  personal  securities. 

14.  Regular  minutes  of  the  proceedings  and  resolutions  of  each 
committee  shall  be  kept  in  books  to  be  provided  for  that  purpose, 
and  each  committee  shall  make  a  monthly  report  of  its  proceedings 
to  the  board. 

15.  No  sum  of  money  of  a  less  amount  than  one  hundred  dollars 
shall  be  received  in  deposit. 

16.  Certificates  of  money  received  in  trust,  specifying  the  dura- 
tion and  terms  of  the  trust,  shall  be  issued  when  required  by  the 
person  creating  the  trust ;  but  in  such  case  the  moneys  received 


27 


shall  only  be  paid  when  due  on  the  production  of  the  original  cer- 
tificate. 

17.  Separate  books  of  transfers  shall  be  kept,  in  which  transfers 
of  shares  of  capital  stock  and  of  certificates  of  trust,  where  the 
same  are  assignable,  shall  be  entered  by  the  person  entitled  to 
make  such  transfer,  or  his  special  attorney;  but  in  every  such 
transfer  the  certificate  before  issued  shall  be  delivered  up,  and  a 
new  certificate  or  certificates  shall  be  issued. 

18.  Every  report  of  a  standing  or  a  special  committee,  shall  be 
in  writing,  and  signed  by  the  members  of  such  committee  assenting 
thereto. 

WM.  BARD,  President. 


r 


RESOLVES  BY  THE  BOARD. 


At  a  meeting  held  on  the  1st  of  April,  1830. 

1st.  On  motion  of  Judge  Oakley, 
Resolved,  That  nine  members,  including  the  president,  shall 
constitute  a  board  for  the  transaction  of  business,  till  otherwise 
ordered. 

Held  June  \6th,  1830. 

All  moneys  deposited  in  trust,  for  a  shorter  term  than  one  year, 
shall  be  deposited  for  a  certain  number  of  months,  not  less  in  any 
case  than  two  months  from  the  date  of  deposit. 

In  all  cases  where  the  moneys  deposited  in  trust  shall  not  be 
withdrawn  at  the  expiration  of  the  term  of  deposit,  they  shall  re- 
main with  the  company  for  another  period,  not  less  than  thirty 
days,  and  be  allowed  the  same  interest  as  if  originally  deposited 
for  the  extended  period. 

When  moneys  so  deposited  intrust,  for  a  period  less  than  a  year, 
shall  have  remained  in  deposit  for  60  days,  the  same  may  be  with- 
drawn at  any  time  thereafter,  and  before  the  period  for  which  the 
deposit  w  as  originally  made,  but  in  such  cases,  no  interest  will  be 
paid  on  such  deposit. 

The  above  regulations  shall  not  extend  to  moneys  deposited  by 
order  of  the  Court  of  Chancery,  or  of  any  other  court. 

2d.  The  president  then  offered  to  the  board  for  their  examina- 
tion, a  device  for  the  company's  seal.  The  device  is  two  concen- 
tric circles ;  between  the  two,  the  following  words  are  engraved : 
"  One  million  capital ;  New- York  Life  Insurance  and  Trust  Com- 
pany and  within  the  inner  circle,  the  following  words  and  figures 
are  engraved  :  "  Protection  for  widows,  children,  and  old  age, 
1830."  The  same  being  examined  and  approved,  on  motion  of  Mr. 
Bloodgood,  the  above  device  was  adopted  as  the  seal  of  the  com- 
pany. 


so 


At  a  meeting  held  the  Sd  August. 
On  motion  of  Judge  Oakley,  seconded  by  Mr.  Prime, 
Resolved,  That  the  trustees  residing  in  Albany,  have  the  power 
of  determining  on  the  expediency  of  making  all  loans  on  real  se- 
curity for  which  application  shall  be  made  to  the  agent  of  the 
company,  at  that  place,  and  that  the  company  will  make  such  loans 
when  in  funds,  upon  the  certificate  of  the  agent,  and  of  B.  F.  But- 
ler as  to  title,  under  such  regulations  as  shall  be  prescribed  by  the 
committee  of  investments,  and  it  shall  always  be  competent  for 
the  committee  of  investments  to  determine  whether  the  state  of 
the  funds  of  the  company  will  authorise  such  loans. 

At  a  meeting  held  1th  September. 

The  committee  appointed  at  the  last  meeting  of  this  board,  to 
negotiate  with  the  banks  of  this  city,  and  to  ascertain  on  what 
terms  they  will  receive  deposits  from  this  company,  collect  their 
notes  and  transact  the  banking  business  of  the  company,  beg  leave 
respectfully  to  report :  That  after  taking  the  necessary  measures  to 
fulfil  the  objects  of  their  appointments,  they  have  ascertained  that 
no  bank  will  agree  to  pay  any  interest  on  deposits;  that  with  re- 
spect to  the  collection  of  monies  out  of  the  city  of  New- York,  the 
United  States  branch  bank,  and  the  Manhattan  company,  offer 
greater  accommodations  than  any  other  institution,  and  that  those 
banks,  as  well  as  most  of  the  others,  without  specially  pledging 
themselves  to  any  given  amount,  hold  out  every  assurance  that 
they  will  at  all  times  afford  the  company  any  temporary  loans  for 
which  they  may  have  occasion.  They  would  further  report,  that 
the  propositions  of  each  of  the  banks  above  mentioned,  are  found- 
ed on  the  supposition,  that  it  shall  exclusively  do  the  banking  bu- 
siness of  the  company. 

On  motion  of  Judge  Oakley,  seconded  by  Mr.  Bloodgood, 
Resolved,  That  the  president  be  instructed  to  keep  the  bank  ac- 
count of  the  company,  with  the  Manhattan  company,  and  that  said 
account  be  kept  in  the  name  of  the  company. 

Resolved,  That  all  moneys  deposited,  or  otherwise,  to  the  credit 
of  the  company,  in  the  Manhattan  bank,  shall  be  drawn  for  by 
checks  signed  by  the  president,  and  countersigned  by  the  secretary. 


31 


At  a  meeting  held  4th  January,  1831. 
Resolved,  In  by-law  No.  9,  that  the  words  "  four  trustees  exclu- 
sive of  the  president,"  in  the  first  and  second  line,  be  erased,  and 
the  words,  "  of  not  less  than  four,  nor  more  than  six,"  be  written 
in  their  place. 

The  committee  also  recommended  the  following  by-law,  which 
was  adopted. 

The  president  shall,  in  case  of  sickness  or  temporary  absence,  be 
authorised  to  appoint  a  president  pro  tern,  to  do  the  duties  of  pre- 
sident. 

WM.  BARD,  President. 

Filed  March  29th,  1831. 

(Copy.) 

JAS.  PORTER, 
Register  of  the  Court  of  Chancery. 


